$2bn renewable energy investments: Why House of Representatives launched probe on REA, others – Official

 

The House of Representatives Committee on Renewable Energy looks set to begin investigation into the utilisation of the $2 billion renewable energy grants and investments meant for the development of the renewable energy sector in Nigeria.

The investments, the committee believed, had yielded a commensurate impact on the energy security challenges.

The probe will cover the period from 2015 to 2024.

REB mgt’s sack

The decision is coming some eight months after President Bola Ahmed Tinubu sacked the Managing Director/Chief Executive Officer Rural Electrification Agency(REA) Ahmad Salihijo Ahmad.

Also sacked alongside Ahmad were Olaniyi Netufo, executive director corporate services, Barka Sajou, executive director technical services and Sa’adatu Balgore, executive director rural electrification fund (REF).

The presidency said the conduct of the aforementioned officials was probed over misappropriation of N1.2 billion in the past two years, some of which had already been recovered by anti-graft agencies.

“In the light of new findings unearthed during a comprehensive investigation into the financial activities of the Rural Electrification Agency (REA), President Bola Tinubu has approved the indefinite suspension of the Managing Director/CEO of the Rural Electrification Agency (REA), Ahmad Salihijo Ahmad, alongside three Executive Directors of the Agency, from office,” the presidency said in a statement.

“Furthermore, President Tinubu has ordered a wider investigation into the conduct of the aforementioned officials in a fraudulent misexpenditure amounting to over N1.2 billion over the past two years, some of which has already been recovered by anti-graft agencies,” the statement further said.  

While Tinubu named Abba Abubakar Aliyu as the MD and CEO to replace Ahmad, Ayoade Gboyega became executive director corporate services, Umar Abdullahi Umar, executive director technical services, Doris Uboh, executive director rural electrification fund (REF), and Olufemi Akinyelure was appointed the executive director in charge of project management unit, Nigeria electrification project.

..Reps probe

Expected at the investigative hearing which begins Tuesday, November 5, are the Nigeria Sovereign Investment Authority (NSIA), National Agency for Science and Engineering Infrastructure (NASENI), the Rural Electrification Agency (REA) and the Nigeria National Petroleum Company Limited(NNPCL). 

Also invited to the session are the Nigerian Content Development and Monitoring Board(NCDMB), Ministry of Petroleum Resources, Country Representative European Union, Ministry of Science, Technology and Innovation, Federal Ministry of Power, Energy Commission of Nigeria, Federal Ministry of Finance, Niger Delta Power Holding Company, Federal Ministry of Marine and Blue Economy, Federal Ministry of Environment and Ecological Management. 

Similarly, Federal Ministry of Petroleum (Gas Resources), Niger Delta Development Commission, United States Agency for International Development, Federal Ministry of Budget and Economic Planning, Federal Ministry of Agriculture and Food Security, Accountant General of the Federation, Renewable Energy and Energy Efficiency Associations (Alliance) REEEA-A and Other Concerned Stakeholders are also billed to be part of the event.

Disclosing this in a statement Sunday in Abuja, the committee chairman,  Afam Victor Ogene, said  the public hearing was consequent upon the  mandate given to the committee by the House to investigate Ministries, Departments, and Agencies(MDAs) with dealings in investment, procurement, and receipt of grants for the development of the renewable energy sector.

The statement said: “Despite government attracting over $2 billion in renewable energy investments in the past decade, as reported by the Rural Electrification Agency in 2023, there has been no noticeable improvement in the sector. 

“The House of Reps was alarmed that the dysfunctional electricity generation and supply system persists, contrary to the objectives behind government investments and grants aimed at developing the renewable energy sector, hence the resolution to probe these investments in order to determine the integrity of the procurement and execution processes.”  

While clarifying that the probe was not targeted at witch-hunting anyone, he said it was rather to discourage opaqueness and promote transparency and objectivity in handling government or public resources. 

He lauded the European Union and other donor agencies for their useful submissions, insights and cooperation in sharing information with the committee.

…Resolutions

The House’ resolutions followed the adoption of a motion titled “Need to investigate investments in renewable energy sector and foreign grants received from 2015 till date”, sponsored by the lawmaker representing Oshodi-Isolo II Federal Constituency, Lagos State, Okey-Joe Onuakalusi.

While leading the debate, the lawmaker said the House was aware that poor electricity generation, transmission and distribution constituted a huge threat to the nation’s quest for industrial and technological development.

Onuakalusi, had during plenary, noted that successive governments since 2015, had made substantial investments and attracted multimillion-dollar foreign grants to the renewable energy subsector of Nigeria’s power industry to create a viable and sustainable alternative energy supply. 

Reeling figures on the components of the investments, the lawmakers observed that in December 2023, the World Bank approved a $750 million facility to boost renewable energy in Nigeria, with the goal of providing over 17.5 million Nigerians with improved access to electricity through distributed renewable energy solutions. 

Also,  in 2020, they said the federal government launched a $200 million renewable energy project, tagged ‘Nigeria Electrification Project (NEP),’ aimed at providing off-grid energy to over 500,000 people across 105,000 households in rural communities, funded by the African Development Bank (AfDB).